$BTC Types of Currency Pairs:

1. Major currencies: These are pairs that include the US dollar (such as EUR/USD, GBP/USD, USD/JPY).

2. Minor or exotic currencies: These are currency pairs that do not include the US dollar, such as EUR/GBP or EUR/JPY.

3. Exotic currencies: These are pairs that include smaller economic currencies or currencies from emerging markets, such as USD/ZAR (US dollar against the South African rand).

How is trading done?

When trading, the trader buys the base currency in the pair while selling the quote currency, or vice versa. For example, if you buy the EUR/USD pair, you are buying euros and selling US dollars.

Impact of Currency Pairs in Trading:

Volatility: Economic and political factors can affect the volatility of currency pairs. For example, economic news such as unemployment data or central bank decisions have a significant impact.

Technical and Fundamental Analysis: Traders rely on technical analysis (such as chart indicators) and fundamental analysis (such as economic news) to predict the movement of pairs.